News from the Alaska State Legislature, the Office of Senator von Imhof
For Immediate Release: April 05, 2019

Senate Finance Introduces Spending Cap, 50/50 POMV Split

von Imhof_stamp.jpgSenator Natasha von Imhof   Web Site    Send Email

JUNEAU – The Senate Finance Committee today introduced a pair of bills to cap government spending and establish a 50-50 split between dividends and state expenses from the limited annual revenue available from earnings reserve of the Permanent Fund.   

Senate Bill 104 caps government spending at $5 billion for fiscal year 2021, allowing for a growth rate based on inflation over the past five years.

“A spending cap gives the Legislature the discipline it needs to keep state spending at a reasonable level from one year to the next,” said Senator Natasha von Imhof, R-Anchorage, co-chair of the Senate Finance Committee. “With an effective spending cap and predictable revenue in place, the state could begin passing a budget on a biennial basis – providing the kind of stability Alaska’s private sector economy needs to grow.” 

Senate Bill 103 splits revenue from the annual draw of the Permanent Fund’s earnings reserve equally between dividends and state expenses.   

“The Senate is committed to protecting the Permanent Fund and dividends for future generations of Alaskans,” said Senator Bert Stedman, R-Sitka, co-chair of the Senate Finance Committee. “SB 103 creates a revenue limit for government and ensures the dividend program survives by protecting it from being consumed by the operating budget. It draws a line in the sand beyond which the state cannot cross over and take from the dividend.”

Last year, the Legislature passed Senate Bill 26, which limits the annual draw from the Permanent Fund to 5.25 percent of the fund’s market value for five of the last six fiscal years. After three years, the draw rate decreases to 5 percent. SB 26 did not, however, address the near 40-year-old dividend calculation, which is out of sync with the new endowment model for the Permanent Fund. SB 103 seeks to resolve that issue.

“SB 103 is a conversation starter,” said Sen. von Imhof. “Alaskans are struggling between our constitutional obligations to provide for education, public safety, and basic infrastructure and our commitment to a healthy dividend program. This bill seeks to strike the right balance.”  

Last Wednesday, the Senate Finance Committee discussed the interplay between the budget and dividends. Under a 50-50 split, eligible Alaskans would receive approximately $2,340 later this year.  

SB 103 and SB 104 were referred to the Senate Finance Committee where a hearing is scheduled for both bills on Wednesday, April 10.

For more information, contact Senate Majority Communications Director Daniel McDonald at (907) 465-4066. 


Share this on Twitter Tweet icon-facebook.png Share

News & Videos more >

Majority Press Office

Alaska Senators Praise Proposed Roadless Rule Exemption

JUNEAU – Today, the U.S. Department of Agriculture announced it is seeking public comment on a draft environmental impact statement offering alternatives to roadless management and a...  Full Story >>

Senator David Wilson

Sen. Wilson Welcomes More Mental Health Treatment Options for Alaskans

WASILLA – Sen. David Wilson, R-Wasilla, Chairman of the Senate Health and Social Services Committee, welcomed the approval Tuesday of the state’s behavioral health portion of its...  Full Story >>

Senator Cathy Giessel

Statement from Senate President Giessel on BP Sale to Hilcorp

ANCHORAGE – BP today announced that it has agreed to sell its entire business in Alaska to Hilcorp Alaska.  Full Story >>

Senator Chris Birch

Chris Birch, Senator, Engineer & Grandfather, Passes Away at 68

JUNEAU – Anchorage Senator Chris Birch passed away on Wednesday. He was 68 years old.  Full Story >>

Majority Press Office

Senate Restores Critical Programs, Provides for Sustainable PFD

JUNEAU – The Alaska Senate today voted to restore funding for programs critical to Alaskans and provide for a sustainable Permanent Fund dividend amount.  Full Story >>

Senator Cathy Giessel

Governor’s Call Amended to Include Capital Budget

Today, Governor Mike Dunleavy amended his call for the Second Special Session to include the unfinished capital budget appropriations bill and to change the session location from...  Full Story >>

Senator Cathy Giessel

Legislative Leaders Act With a Sense of Urgency as Veto Overrides Fail

This week, the clock ran out on the Alaska Legislature's constitutional opportunity to reject Gov. Mike Dunleavy's $444 million in budget vetoes through an override vote supported by...  Full Story >>

Majority Press Office

Alaska Legislature to hold veto override session on Wednesday

Joint floor session scheduled for 11:30a.m. in the Alaska State Capitol  Full Story >>

Senator Cathy Giessel

Statement from Alaska Senate President on Governor’s Vetoes

ANCHORAGE – Senate President Cathy Giessel, R-Anchorage, today released the following statement on Governor Mike Dunleavy’s announced vetoes to the state’s operating budget....  Full Story >>

Majority Press Office

Legislature to Meet in Juneau, Hold Most Meetings in Anchorage

JUNEAU – The Alaska Legislature announced today it will convene in Juneau on July 8th for the 2nd special session, with the majority of meetings to be held in Anchorage....  Full Story >>

Find your Senator full map